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- Amble, Inc. exchanged a truck with a carrying amount of ₱12,000 and a fair value of ₱20,000 for a truck and ₱5,000 cash. The fair value of the truck received was ₱15,000. At what amount should Amble record thetruck received in the exchange? a. 7,000 b. 9,000 c. 12,000 d. 15,000 Why is the correct answer is 15,000The company provided the data of PP&E in a cash-generating unit (CGU) as follows: Cost Accumulated Depreciation Equipment A $ 15,000 $ 8,000 Equipment B 30,000 19,000 Equipment C 45,000 23,000 The unit’s fair value less costs to sell was $25,000. The unit’s future cash flows was $32,000, and its present value was $28,000. The company adopted IFRS. Prepare journal entries to record impairment. If the recoverable amount of Equipment C is $19,000, prepare journal entries to record impairment. If the recoverable amount of Equipment C is $24,000, prepare journal entries to record impairment.Amble Inc. exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The exchange has commercial substance. At what amount should Amble record the truck received? a. $12,000 b. $15,000 c. $20,000 d. $25,000
- Toro Co. has equipment with a carrying amount of$700,000. The expected future net cash flows from theequipment are $705,000, and its fair value is $590,000.The equipment is expected to be used in operations inthe future. What amount (if any) should Toro report asan impairment to its equipment?Winn Company exchanged an old machine having a carrying amount of P16,800, and paid a cash difference of P6,000 for a new machine having a total cash price of P20,500. The cash flows from the new machine are expected to be significantly different than the cash flows from the old machine. What amount of loss should Winn recognize on this exchange?On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset (machinery). the following data were made available: PAOLO: Equipment P4,400,000 accumulated depreciation 2,000,000 cash received from gerald 3,000,000 YEN: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is the cost of the new asset of PAOLO?
- ABC has determined that one of its cash generating units (CGU) is impaired. The assets of the CGU at their book value are: Land – 4,000,000; Factory – 1,200,000; Machinery and Equipment – 1,800,000. The value in use of the cash generating unit is P5,500,000. The impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)RCG Company, purchased machinery to be used in production forP6,500,000 on April 1, 2017. The machine had a 5-year life, P500,000 residual value, and was depreciated using the double declining balance method. On January 1, 2020 a test forimpairment indicated that the undiscounted cash flows from the machine are less than its carrying value. The machine's value in use on January 1, 2020 is P1,100,000. 1. What is the loss on impairment?Swifty Corporation has equipment with a carrying amount of $2540000. The expected future net cash flows from the equipment are $2575000, and its fair value is $2049000. The equipment is expected to be used in operations in the future. What amount (if any) should Swifty report as an impairment to its equipment? $35000. $491000. $526000. No impairment should be reported.
- On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with YEN's non- monetary asset (machinery). The following data were made available: PAOLO: Equipment Accumulated depreciation Fair value of the Equipment P4.400,000 2.000,000 3,000,000 YEN: Machinery Accumulated depreciation Fair value of the machinery P3,700,000 1,800,000 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is cost of the new asset of PAOLO?Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively. Assume Calaveras paid $8,000 in cash and the exchange has commercial substance. (1) At what amount will Calaveras value the pickup trucks? (2) How much gain or loss will the company recognize on the exchange?ABC is testing a store branch for impairment. The assets of thebranch include a building with a carrying amount of P4,000,000,equipment of P3,000,000, inventory of P2,000,000 and goodwill ofP500,000. The fair value less cost to dispose of the inventory is P2,500,000.The expected cashflows from the branch are: Year Amount1 P 2,000,0002 1,700,0003 1,500,0004 1,500,0005 1,300,000 The effective interest rate is 9%. The present value of the cashflowsbeyond year 5 is estimated to be at P400,000. 10. Value in use of the store branch11. Total Impairment Loss12. Carrying value of the building after impairment13. Carrying value of the inventory after impairment14. Carrying value of the goodwill after impairment